I hate AT&T! This is just another reason to dislike them.

I switched to Cingular from AT&T due to poor reception, poor service, and dropped calls. Cingular was great; I had none of those problems. Ever since they have been purchased by AT&T, the problems have resumed.

I'm not sure how they could crap up Cingular, but I'm heading for the hills and waiting for Android phones on another carrier.

Why you would want a 3G phone when coverage is spotty and you already have an iphone I dunno, but ATT is at fault here for not honoring their press release. They should have worded it better really.

Rom's in the right, ATT is trying to weasel out of what they announced to the public. Sorry if their press release was wrong, but that's why you hire someone to be a press agent.

The reasons original iPhone customers were given the subsidized price, were two-fold. First, they needed to stay in the good graces of the early adopters. Two, the original iPhone, contrary to the 3G, was UNSUBSIDIZED. Every single person who bought the original iPhone paid RETAIL price. Therefore, most people, even if they were already AT&T customers previous to buying the new iPhone, would at this point be upgrade eligible. Granted, there is some gray area in the policy, but not enough for someone to honestly believe that they could purchase a BlackBerry at the subsidized price, then turn right back around and purchase an iPhone at the subsidized price as well. For example, no one would assume that they could walk into an AT&T store and buy a new Tilt for $199, then walk in a month later and purchase a Treo 750 for the same $199. It's absurd.

Shame on you Consumerist, this post should be tagged as Bad Consumer, not as a mark against AT&T. One strike against you as a consumer advocate.

But it sounds to me like if he already bought the blackberry at a subsidized price, he would no longer be an iPhone customer and would not be eligible for the subsidized iPhone 3G. ATT sold the Blackberry at a subsidized price with the contract attached to it to recoup their losses. An upgrade to the iPhone 3G at nthe low price now would mean a new contract to recoup ATT's losses on the iPhone sale -- which means their losing out on the Blackberry.

Of course, it took several emails to Steve Jobs to make it work, but in the end, the Office of the President of AT&T is remarkably powerful.

(hint: the term you wanted is 'Benjamins')

I switched over to AT&T two months before the 3G IPhone came out because T-Mobile's service had become intolerable. Needless to say, I was ineligible for an upgrade for a long time, but my salesman explained I would become eligible for the subsidized price if I upgraded to a Family Plan. He discounted the plan by 15% to beat my current rate and I received an extra 100 minutes a month. I plan to unlock my Moto Q9 for overseas travel and keep the IPhone for domestic use.

The drawback is that if I choose to leave AT&T within 2 years, I will be charged for 2 termination fees. So far so good though as the service is coverage is much better than T-Mobile in my area.

@CuriousO: "In the future, AT&T may offer a no-commitment option of $599 for 8GB and $699 for 16GB."

In the future, ATT, apple and anyone else who charges 7 Large + taxes for a non gold-plated, diamon-encrusted phone whose obsolescence and battery life is measured in months can kiss my ass. That's what I call REAL "no-commitment".

@davebg5: The 3G iPhone IS terrible. My best friend has one and it does drop calls all the time (maybe that's AT&T though?). I wanted one at one time but would NEVER, I repeat NEVER get into bed with AT&T for two years to get one. Worst company ever.

Trust me, stick with your original iPhone. The iPhone 3G drops calls like it's 1996. I've got one and it's a nightmare. I'm going tomorrow to swap it out for another one.

The rules are quite clear.

You have to be eligible to upgrade to the new iPhone3G.
No if's ands or but's.

iPhone2G customers had their eligibility restored automatically in Care/Telegence as soon as the iPhone 3G was announced.
If this eligibility was changed by buying new equipment at a subsidized price, then there is nothing we can help you with in order to get the iPhone3G at the subsidized $199 price.
There are zero (I repeat ZERO) early upgrades with the iPhone3G.

GG, FAILCAT

iPhone customers who purchased before July 11 Well, he was an iPhone customer, but he isn't anymore because he now uses and pays for a Blackberry. He is an iPhone owner, but not an AT&T iPhone customer.

Customers activating a new line with AT&T He's not activating a new line.

Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount He was eligible, but he used his upgrade on the Blackberry.

So, as much as it kills me to say this, I have to side with AT&T on this one.

Re-activate your iPhone. You should be able to get the discount because you'll be an iPhone customer again.

Unless ATT specifically says he is disqualified as part of the press release, he's right. Also, he's a Spaceknight. You just don't argue with a Spaceknight, they will fuck you up.

While I do believe that Rom is totally gaming the system here, I think technically ATT should go ahead and give him the upgrade. It's ATT's fault that they worded their upgrade policy the way they did. If they said iphone "users" instead of "customers" then he'd be out of luck.

I think that says it all. He admitted that he's not eligible, yet he's still trying to get something he's NOT "entitled" to.

@ people who upgraded from the 2g IPhone: Right before the launch AT&T flipped some kind of switch that told the system to reset the eligibility of anyone with an IPhone set up as their active equipment (based of the serial number in the system) as a one time thing- so if you got the IPhone, then upgraded, then switched back awesome for you.
With the restrictions on the 2g Iphone (no discounts, mandatory data plan, etc) I think your chances of arguing that you're still an IPhone customer when you don't have the phone or the restrictions on your line isn't really going to fly. Still, if you got the blackberry (or some other phone) at full retail price or on e-bay or something you -might- still get some help with it.

This is not at&t's fault. The consumer signed up for a new 2 year contract after already having the iphone. It doesn't sound like he/she is an active iphone user, but rather a blackberry user. C'mon Consumerist, this was an easy one. They already got a greatly discounted phone in the BB. Of course they don't qualify for upgrade pricing.

Cm n cnsmrst! D sm rsrch bfr y pst ths stff.

If he's not using the iPhone, which he is not if he upgraded to a blackberry, he is no longer an iPhone customer.

Bad consumer trying take advantage of an offer that is not available to him.

AT&T is correct in denying the upgrade. He did buy a subsidized phone as his last purchase and is not eligible for an upgrade.

I think I heard every excuse in the book. The worst was the people who thought they were important and "deserved" one.

Right now - my wireless account says that I am elegible for an upgrade to a new iPhone 3G at the subsidized price ($199 for the 8GB/$299 for the 16GB).

Tell him to try and do it online through his wireless account. It should show him eligible there. Don't rely on the people at the call center.

But the logic is admittedly contradictory. Let's say he bought the Blackberry at an unsubsidized price. By the same logic, he could argue that he's an existing, upgrade-eligible customer and and iPhone customer. He falls into two classes, there for he's eligible for two discounted iPhones.

It comes down to which of the three classes is he in. AT&T says "existing, non-upgrade eligible customer" (and they specifically define how much a non-upgrade eligible customer will pay). He says "I'm still an iPhone customer, regardless of my membership in the other class".

You fall into "What kind of customer am I Land", which is horrendously complicated and has to do with how much you pay per month and how long you've had your contract. They seriously break it down into like 4 different groups and 6 month intervals, and several monthly price brackets. Its a hot, hot mess.

Given how crap-filled the iPhone 2.0 subsidization plan is, I understand why the first iPhone was "fuck you, no subsidizing". I took it home, clicked a few buttons in iTunes, and had my iPhone already linked to my girlfriend's family plan (she got a corporate discount, and a free iPhone from work). And, that was the most sublime cellphone activation experience imaginable. Now we have lines outside apple stores, activation woes, complicated subsidy schemes, and this guy who wants to get his cheap iPhone, but can't.

I'm all for what's fair, and sure enough I have my gripe with AT&T just like everyone else, but I have to say your argument is a moot point. You used your subsidy money on the Blackberry thus a 1 year wait on any other promotion/upgrade/whatever, and now you're using semantics of the "iPhone customers who purchased before July 11" rule to justify why you should get a 3G for the promotional price.

Grats if you do get it, but I wouldn't hold my breath too long.

This is Rom. I'd like to ask you all that disagree with me, what's the point of putting out rules on a press release if they will be ignored later.

It's irrelevant whether the rules make sense to *you* or not, and whether you agree with them. AT&T decided to change the rules of subsidies with the iPhone, only to come back and change their mind when confronted.

How much will I pay for iPhone 3G?
If you are upgrade eligible and your account is in good standing, you will pay $199 for 8GB (black) and $299 for 16GB (black or white). Two-year contract required.

You have the option to purchase an early upgrade priced at $399 for 8GB (black) or $499 for 16GB (black or white). Two-year contract required.

In the future, AT&T may offer a no-commitment option of $599 for 8GB and $699 for 16GB.

[www.wireless.att.com]

New iPhone pricing is subsidized. Thus, he pays more.

Although I don't get the whole iCraziness, I think they should just let Rom have the phone for the price advertised.
If you have a customer who owns one of your hyped products and then that customer buys another hyped product and wants to be yet another one, give them the advertised price. Clearly this customer is planning to remain a customer.

Pretty low of ATT seeing as he was an iPhone customer regardless of what device has been activated on his account since release.